| Wed 18 Jun 2003, 11:37 | | Audited Annual Results |
|
African Gem Resources Limited -
African Gem Resources Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/007292/06)
Share code: AFG
ISIN: ZAE000025540
("AFGEM" or "the company")
AUDITED ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2003
13 months
Year ended ended
31 Mar 2003 31 Mar 2002
Audited Audited
R R
Balance Sheets
Assets
Fixed assets 80 769 544 80 071 129
Non current assets
Deferred taxation 3 308 621 1 573 639
Current assets 83 618 946 105 593 364
Inventory 26 161 557 27 055 100
Accounts receivable 12 726 323 11 570 404
Taxation receivable 6 984 174 -
Cash and cash
equivalents 37 746 892 66 967 860
Total assets 167 697 111 187 238 132
Equity and liabilities
Capital and reserves
Ordinary shareholders" interest 131 191 218 148 932 023
Outside shareholders" interest 1 973 148 -
Non current liabilities 24 217 810 26 638 246
Deferred taxation 6 231 492 5 384 630
Long term liabilities 17 197 408 20 653 616
Environmental rehabilitation
provision 788 910 600 000
Current liabilities 10 314 935 11 667 863
Accounts payable 10 314 935 9 261 592
Taxation payable - 2 406 271
Total equity and liabilities 167 697 111 187 238 132
Net asset value per share (cents) 101,24 115,07
Number of shares - issued 129 581 182 129 519 182
Number of shares - weighted 129 531 072 129 427 414
Statements Of Changes In Equity
Share capital and share premium 112 028 936 111 968 176
Balance at beginning of
year/period 111 968 176 111 770 676
Arising from share issue 60 760 197 500
Retained income 19 162 282 36 963 847
Balance at beginning of
year/period 36 963 847 21 999 143
(Loss)/income attributable to
ordinary shareholders (17 801 565) 14 964 704
Total ordinary
shareholders" interest 131 191 218 148 932 023
Income Statements
13 months
Year ended ended
31 Mar 2003 31 Mar 2002
Audited Audited
R R
Revenue 74 079 745 41 305 443
Cost of sales (40 024 972) (25 514 168)
Gross profit 34 054 773 15 791 275
Net foreign exchange (loss)/gain (13 273 104) 16 566 534
Other income 30 534 71 912
Pre-production expenditure
capitalised - (1 867 521)
Operating expenses (34 398 068) (18 681 959)
Operating (loss)/income (13 585 865) 11 880 241
Net interest (paid)/received (325 006) 3 294 204
Pre-production expenditure
capitalised - 1 867 521
Net (loss)/income before taxation (13 910 871) 17 041 966
Taxation 888 120 (5 274 681)
(Loss)/income after taxation (13 022 751) 11 767 285
Outside shareholders"
(interest)/deficit (4 778 814) 3 197 419
(Loss)/income attributable to
ordinary shareholders (17 801 565) 14 964 704
(Loss)/earnings/Headline (loss)/
earnings per share (cents) (13,74) 11,56
Cash Flow Statements
Cash flows from operating activities
Cash (utilised in)/generated
by operations (4 015 717) 5 774 415
Net interest (paid)/received (325 006) 3 294 204
Taxation paid (9 390 445) (8 111 575)
Net cash (outflow)/inflow from
operating activities (13 731 168) 957 044
Cash inflows from investing
activities
Investment to expand operations
Net additions to fixed assets (10 147 796) (37 101 466)
Additional investment in
subsidiary company
inflows from financing activities (2 536 338) 16 124 365
Cash and cash equivalents
Net decrease for the year/period (29 220 968) (20 020 057)
At the beginning of the
year/period 66 967 860 86 987 917
At end of year/period 37 746 892 66 967 860
The group annual financial statements have been prepared on the historical cost
basis, except for financial instruments, which are stated at fair value and in
accordance with South African Statements of Generally Accepted Accounting
Practice and in terms of the requirements of the South African Companies Act,
1973 (as amended). The principal accounting policies were consistently applied.
The financial results of African Gem Resources Limited have been audited by KPMG
Inc. The audit opinion is available for inspection at the offices of the
company.
Overview
The financial year ended 31 March 2003 was characterised by extreme volatility
in financial markets and the significant strengthening of the South African Rand
against the US Dollar. The appreciation in the value of the Rand gave rise to a
total foreign exchange loss in the group of R13,3 million, compared to a R16,6
million gain in the previous period. In addition, the group had a stock write
off of R7,6 million due to the strengthening of the Rand.
All operations continued their productivity and cost containment initiatives
which were introduced during the financial year. The cumulative benefits of
these initiatives will become apparent in the 2004 financial year.
Whilst the instability in the markets had a significant impact on the group"s
earnings, AFGEM increased its share of the global tanzanite market during the
year under review and both demand for and prices of tanzanite were encouraging.
Balance sheet
The group ended the year with total assets of R168 million (R187 million in
2002), including capitalised development expenditure of R1,9 million. This was
funded by 11% debt, the same as in 2002.
Consolidated cash flow and investment highlights Operating activities generated
net cash inflows before working capital movements of R9,4 million, some R4,1
million above last year"s R5,3 million. The ratio of operating income before
working capital changes to consolidated turnover decreased to 12,7% from last
year"s 12,8%.
The group"s cash position was negatively impacted by the cash payment for an
additional 10% investment in Merelani Mining Limited, the group"s Tanzanian
mining subsidiary. A significant portion of the group"s cash is held in US
Dollars and the strengthening of the Rand negatively impacted on this cash
holding. At 31 March 2002, the group had US$3,2 million in various subsidiary
bank accounts, compared to US$4 million at 31 March 2003. The strengthening of
the Rand against the US Dollar resulted in a R11 million loss on the opening US
Dollar holding of US$3,2 million.
Investor relations The Annual Report will be posted to shareholders on 19 June
2003 and will be available on www.africangem.com from 23 June 2003. For and on
behalf of the board
MJ Nunn MR Summers
Chairman & CEO Group Financial Director
19 June 2003
Date: 18/06/2003 11:30:07 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
